"The steady positive news across geographies on the iPhone 7 launch implies demand is stronger than thought," Kvaal commented. "We believe the supply chain is preparing for upward revisions to production forecasts. We are lifting our high-end iPhone estimates and our price target to $135."

The firm now anticipate 78mn iPhones in F1Q, solidly above consensus of 75mn. They lift FY17 estimate from 230mn to 234mn (consensus 221mn).